Close Brothers Private Equity (CBPE) has invested £16 million of development capital to support the secondary buy-out of Pilgrim, a UK based specialist food ingredient business, from retiring shareholders including 3i.

3i originally funded the buy-out of Pilgrim in 1996.

Pilgrim is a niche food ingredients business, which has operations in France and China as well as the UK. Its customers include many of the blue chip global food processors. Pilgrim has demonstrated significant growth in recent years.

It supplies products for a range of growing markets including cereals, instant snacks/soups and salads. The company has sizeable market share in each of its core markets.

Funding from CBPE and Pilgrim management, together with additional banking facilities provided by The Royal Bank of Scotland (RBOS) Corporate & Structured Finance team in Leeds, have been provided to invest in the future growth in each of its core markets.

Paul Smith, Managing Director, who has been with Pilgrim since 1994 and led the buyout team, said: “We are delighted to have the backing of CBPE and RBOS. We look forward to expanding the business further, in particular, given the anticipated growth in our core markets.”
Iain Slater, Partner at CBPE, added: “Since the early 90s, Pilgrim has developed into a highly regarded niche food business with significant market share in its core segments. We are pleased to have the opportunity to invest alongside the Pilgrim management team in a company with a strong market position and attractive growth prospects.”
Graham Miller, 3i Director, commented: “Pilgrim has evolved into a world class business. We are proud to have been the company's equity partners and wish the management team continued success in the future.”


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For more information contact:

Close Brothers Private Equity
Iain Slater
Tel: +44 (0) 20 7065 1133
Or email: iain.slater@cbpel.com

This press release has been issued by Close Brothers Private Equity LLP.